REDDIT (#REDDIT) weekly special report based on 1.00 Lot Calculation:
SOCIAL NETWORKING
- SOCIAL MEDIA MARKET SHARE: Facebook continues to lead with around 61% of the market, followed by Instagram with 11%, Twitter and Pinterest, taking up around 9% each. YouTube takes up around 8%, while Reddit takes up around 2% (up from previous 0.6%). This is according to gs.statcounter.com.
REDDIT OVERVIEW
- COMPANY: Reddit is the 6th most visited website on the internet and 9th most popular social media provider. Reddit allows anonymous posts, supporting honesty and transparency. Interestingly, posts can be voted for by the community and the posts with the highest votes generate greater authority.
- FOUNDED: 2005
- ACTIVE USERS: Reddit averages 97.2 million daily users, up from 70 million in 2023, and 1.21 billion active monthly users, up from 850 million last year. It also has approximately 270 million weekly active users.
- MONEY- GENERATION: Reddit makes money through advertising on the site. In recent quarters, it would make a quarterly ad revenue of around $315 million. The company also offers premium packages of around $5.99 a month.
- MARKET CAP: $26B.
REDDIT: FINANCIALS
- REDDIT REPORTED THIRD QUARTER 2024 RESULTS: On October 29th, the social media company posted its financial results for the third quarter. Reddit’s Daily Active Uniques (DAUq) for the quarter increased 47% from a year ago to 97.2 million. For Q4 2024, Reddit expects revenues to be between $385 million and $400 million. Revenue increased 68% year-over-year to $348.4 million, Ad revenue increased 56% year-over-year to $315.1 million, and other revenue increased 547% year-over-year to $33.2 million.
- REDDIT HAS BECOME PROFITABLE COMPANY FOR THE FIRST TIME IN ITS HISTORY: Reddit reported its first quarterly profit and forecast fourth-quarter revenue above estimates, helped by its AI content licensing deals and strong digital advertising spending. Further, Net income was $29.9 million, as compared to a net loss of $(7.4) million in the prior year.
- UPWARD TREND: In 2025, the company will be modernizing its search products with improved results page, autocomplete features and integration of large language models to make search results better, CEO Steve Huffman said on a post-earnings call.
REDDIT: ARTIFICIAL INTELLIGENCE
- REDDIT CUTS A DEAL WITH AI COMPANIES:
- GOOGLE - According to the Verge, Google is getting AI training data from Reddit as part of a new partnership between the two companies. A deal reportedly worth $60 million per year will give Google real-time access to Reddit’s data and use Google AI for Reddit’s search.
- OpenAI – Reddit announced a partnership with OpenAI that will allow the ChatGPT maker to train its artificial intelligence models on Reddit content.
- LICENSING DATA: Reddit has strategically capitalized on the AI boom by licensing its extensive collection of user-generated data to train artificial intelligence models. This move has aligned the platform with the surging investor interest in AI. By providing high-quality data to leading AI developers, Reddit has tapped into a rapidly growing market where diverse and dynamic datasets are critical for training advanced models.
REDDIT: PRICE ACTIONS
- REDDIT’S STOCK HAS CLIMBED MORE THAN 300% SINCE MARCH IPO. The company capitalized on this popularity when it launched its initial public offering (IPO) in March at $34 a share. Since then, Reddit stock has risen by more than 300%. However, it could also decline.
- REDDIT HIT AN ALL TIME HIGH OF $158.19 (November 21st, 2024). The stock trades currently around $146. However, it could also decline.
- ANALYST OPINION: On November 22nd, Reddit price target was raised to $175 from $120 at Jefferies. Similarly, JMP Securities raised Reddit’s targeted price to $160.
REDDIT, November 25th, 2024
Current Price: 146
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|
Weekly |
|
Trend direction |
|
|
250 |
|
|
200 |
|
|
170 |
|
|
123 |
|
|
110 |
|
|
100 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
104,000.00 |
54,000.00 |
24,000.00 |
-23,000.00 |
-36,000.00 |
-46,000.00 |
|
Profit or loss in €2 |
98,825.97 |
51,313.48 |
22,805.99 |
-21,855.74 |
-34,208.99 |
-43,711.49 |
|
Profit or loss in £2 |
82,526.91 |
42,850.51 |
19,044.67 |
-18,251.14 |
-28,567.01 |
-36,502.29 |
|
Profit or loss in C$2 |
145,206.36 |
75,395.61 |
33,509.16 |
-32,112.95 |
-50,263.74 |
-64,225.89 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 14:00 (GMT) 25/11/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.